By Edet Udoh
The Chairman, Nigerian Insurers Association (NIA) and Managing Director, Nem Insurance Plc, Mr. Tope Smart, has called on insurance industry stakeholders to work together in order put the industry in its prime position, saying insurance is the bedrock of the economy.
He said no economy can survive without insurance.
The NIA boss expressed concern that the industry is yet to play its critical role as the bedrock of the economy which, according him is why the sector is not being taken seriously.
“We should be able to put insurance in its prime position. Insurance is the bedrock of the economy. All these industries can’t survive without insurance. So, if insurance is the bedrock of the economy, then why are we not playing our critical role and not being taken so seriously? So, it is a major concern for me and I think all the stakeholders in the industry must work together.
“My major concern for the industry is that we are not occupying the position we are supposed to be as an industry. A lot of other industries don’t have respect for our industry because we are yet to play a role that is critical and fundamental as an industry.
The NIA boss cited the industry’s insignificant contribution to the nation’s gross domestic product (GDP) as one of the reasons why the industry is not taken seriously.
“One of the reasons why we are not taken seriously is our low contribution to the GDP. It is very insignificant and that is why people tend to look down on the industry as one that is underperforming. This is a very major concern for me which I think we should try to address,” he said.
On what should be done for the industry to grow and take its prime place in the nation’s economy, he said a lot needs to be done but first the industry needs adequate government’s support especially on enforcement of compulsory insurances.
Secondly, he said, the people need to be educated on the benefit of insurance, noting that not many people are aware of the values and benefits of insurance.
According to him, “So many things can be done to achieve growth for the industry. The first thing is that we need the support of government because we lack adequate support from government. As we all know, government is the biggest spender in any economy and we need government not only to insure all the assets of government but also enforce compulsory insurances.
“We have so many insurance products that our regulator, the National Insurance Commission (NAICOM) rolled out but how many people actually take all those covers? Very insignificant, let’s take the example of motor insurance.
“If the Federal Government can help us to enforce the compulsory insurances, such that no car plies Nigerian roads without having the minimum insurance cover of third party, it will have huge effect on our industry.
“Also, look at all other compulsory insurances like Group Life, Health Care Professional Indemnity, Insurance of Public Buildings, Insurance of Buildings under Construction and Employers Liability Insurance. We need government to assist us to enforce all these insurances. If this is done, the industry’s premium will shoot up significantly. This is one angle to it.
“The second angle is that we need to increase our penetration level. For instance, we are far from our target on financial inclusion for the industry. We need to reach the unreached on insurance and educate people to know the benefit of insurance.
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